Gold and silver head back to support

Over the past few days, gold and silver have attempted to break out to the upside but have failed. The next logical step is a return to support, $1,900 for gold and $25.5 for silver. The pattern suggests a test or a breakdown through those levels.

We know the market promises nothing; however, the price action and the map created by the charts suggest the next move will be lower. The lack of volume and trade is a concern that should lead to a continuation lower. Although equities have tried to push higher, the rallies are weak.

There are many concerns in all markets. The potential for an equity collapse is a real possibility. Although we are long now, a sell-off would be no surprise. We are witnessing a market that has gone relentlessly higher in the face of inflation, geopolitical issues, and an administration willing to give everything away.

Gold, silver, and platinum should eventually find new bottoms around 1900 before exploding higher. Trading is short-term; trends can change at any time. We are short gold and silver, looking for a test of the bottoms.